Macro News 1. On the afternoon of June 12, Premier Li Qiang met with European Central Bank President Christine Lagarde at the Great Hall of the People in Beijing. Li Qiang pointed out that China and Europe have strong economic complementarity, with China possessing a super-sized market advantage and continuously unleashing market potential. There is significant cooperation potential between China and Europe in many fields. China is willing to strengthen market connectivity and industrial synergy with Europe to add more momentum to their respective development. Lagarde stated that under the current international situation full of uncertainties, maintaining high-level exchanges and dialogue cooperation between Europe and China is crucial. Tariff wars and trade wars only lead to lose-lose outcomes, while adhering to multilateralism and strengthening open cooperation is the right choice. 2. On the afternoon of June 12, the Ministry of Commerce held a regular press conference. A reporter inquired about the first meeting of the China-US economic and trade consultation mechanism. Ministry of Commerce spokesperson He Yadong stated that from June 9 to 10 local time, the China-US economic and trade teams held the first meeting of the consultation mechanism in London, UK. The two sides reached a principled consensus on implementing the important consensus of the June 5 phone call between the two heads of state and the framework of measures to consolidate the outcomes of the Geneva economic and trade talks, making new progress in addressing each other's economic and trade concerns. Regarding the rare earth issue, as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the private sector, reviews applications for export licenses of rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications according to law, and will continue to strengthen the approval of compliant applications. 3. On June 11, People's Bank of China Governor Pan Gongsheng held the first annual meeting with European Central Bank President Christine Lagarde. The two sides exchanged in-depth views on topics including the economic and financial situations of China and Europe, reform of the international monetary system, global financial regulation, and key areas of cooperation between the two central banks. After the meeting, the two sides signed the Memorandum of Understanding on Cooperation between the People's Bank of China and the European Central Bank. 4. A passenger plane crashed at Ahmedabad Airport in Gujarat, India, on June 12. According to reports, all 242 people on board were killed. CCTV News learned that local police found one survivor in the Indian plane crash. 5. Foreign Ministry spokesperson Lin Jian presided over the regular press conference yesterday. A foreign media reporter asked about US President Trump's post on his social media platform, claiming that an agreement had been reached with China, such as China providing rare earth magnets. Lin Jian stated that China always honors its words with actions. Since a consensus has been reached, both sides should abide by it, and China hopes the US will work with China to implement the important consensus reached in the phone call between the two heads of state. Industry News 2. Recently, the People's Bank of China and the State Administration of Foreign Exchange jointly issued the "Several Measures on Financial Support for Fujian to Explore a New Path for Cross-Strait Integrated Development and Build a Demonstration Zone for Cross-Strait Integrated Development." TheThe "Several Measures" proposes 12 policy measures in four aspects: optimizing the financial ecosystem of the cross-strait shared "living circle", serving the construction of the first home for Taiwan compatriots and Taiwan-funded enterprises to land on the mainland, supporting the pilot program for high-level opening-up of cross-border trade in Fuzhou, Xiamen, and Quanzhou, supporting the facilitation of cross-border investment and financing under the capital account, comprehensively strengthening financial supervision, and effectively preventing and defusing financial risks. These measures are of great significance for continuously deepening the construction of a demonstration zone for cross-strait integrated development and promoting high-level financial opening-up. The People's Bank of China and the State Administration of Foreign Exchange will promote the detailed implementation of various policy measures outlined in the "Several Measures", further intensify financial support for the integrated development across the Taiwan Strait, and provide strong financial support for the construction of the demonstration zone for cross-strait integrated development. 3. At the Annual Meeting of the Asia Traders Forum & Stock Trading Summit 2025, Tim LUI, Chairman of the Securities and Futures Commission of Hong Kong, stated that the SFC is studying plans to adjust the number of shares per trading lot, thereby enhancing the convenience of trading high-priced stocks and odd lots, and further improving market liquidity. 4. The General Office of the People's Government of the Guangxi Zhuang Autonomous Region recently issued the "Implementation Plan for Special Actions to Boost Consumption in Guangxi". It mentions expanding support for trade-in policies for automobiles, home appliances, home improvement, kitchen and bathroom products, and e-bikes, as well as subsidies for purchasing new 3C digital products. 5. In 2025, Urumqi plans to develop 82 cultural and tourism projects with a total investment of 44.815 billion yuan and an annual planned investment of 5.4116 billion yuan, representing increases of 76%, 181%, and 170% respectively compared to 2024. The focus will be on introducing a batch of high-end hotel cluster projects, creating a number of major construction projects, and building a comprehensive cultural and tourism space integrating cultural experiences, commercial consumption, and leisure and entertainment. 6. With the "Suzhou Super League" gaining widespread popularity, some netizens have called on Sichuan to host similar football events through the "Ask the Government Sichuan" platform. In response, the Sichuan Provincial Sports Bureau stated that the "Bashu Xiongqi Cup" Sichuan Super League will learn from the healthy development experience of the "Suzhou Super League", improve the event system, strengthen supervision, promote fair competition, mobilize social forces to participate, facilitate the development of mass football and campus football, and support nationwide fitness. Company News 1. New China Life Insurance announced its intention to subscribe for private equity fund shares with an investment not exceeding 15 billion yuan. 2. China Vanke Co., Ltd. announced that it sold a total of 72.96 million A-share treasury shares from June 10 to June 12, which will help supplement the company's working capital. 3. *ST Gongzhi announced that the Shenzhen Stock Exchange has decided to terminate the listing of the company's shares. 4. Yidian Technology stated on an interactive platform that POP MART is an important client of the company. 5. ST Jinyi announced that the other risk warnings for the company's shares have been revoked, and trading will resume from June 16. 6. Xiaofang Pharmaceutical announced a collaboration with Shanghai Dermatology Hospital to develop Compound Platycladi Tincture, a Class 1.1 traditional Chinese medicine for treating hair loss. 7. PowerChina secured a 10.77 billion yuan offshore wind power EPC turnkey project. 8. Qingmu Technology clarified that it currently only provides e-commerce agency operation services for Pop Mart's Tmall flagship store. 9. Taiji Co., Ltd. disclosed that its controlling shareholder and actual controller are planning matters related to changes in company control, leading to a trading suspension. 10. Hengbao Co., Ltd. announced that director and vice president Gao Qiang plans to sell no more than 197,500 shares. 11. Jingjin Equipment reported that its actual controller, chairman, and general manager has been placed under retention. 12. Feiliner completed verification work, with its shares resuming trading on June 13. Global Markets US and European stocks showed mixed performance, with both the S&P 500 and Dow Jones hitting at least three-month closing highs. US stocks opened lower but closed higher, with all three major indices posting slight gains. The S&P 500 rose 0.38%, the Dow gained 0.24%, and the Nasdaq advanced 0.24%. The S&P 500 reached its highest closing level since late February, while the Dow achieved its best close since early March. Oracle surged over 13% to a record high after exceeding Q4 earnings expectations. US fintech firm Chime jumped over 37% on its debut. Boeing fell nearly 5% following an Air India Boeing 787 crash. European indices closed mixed, with Germany's DAX30 down 0.48%. International crude oil futures settled slightly lower. WTI July crude dropped 0.16%, while Brent August crude declined 0.59%. COMEX gold futures rose 0.84% to $3,406.8/oz, and silver futures gained 0.41% to $36.41/oz. Investment Opportunities 1. Pop Mart Expanded Capacity Early This Year, But Demand Far Exceeds Supply Chain Response Media reports indicate that since Chinese New Year, Pop Mart has urgently recalled workers and expanded capacity to meet surging demand driven by rising IP popularity. An insider described this as a "sweet trouble" where market demand vastly outpaces supply chain responsiveness, noting "even overworked sewing machines can't keep up." The core appeal of IP collectibles lies in instant emotional gratification. Labubu's distinctive features meet specific demands, amplified through social media. Current supply shortages and product scarcity further elevate circulation premiums, significantly boosting visibility. Zhongtai Securities released a research report stating that it is optimistic about the investment value of the IP industry and anticipates the growth and commercialization of major IPs. Three directions are worth noting: (1) Leading companies in the IP2C model for trendy toys that possess a high-quality IP matrix, strong operational capabilities, and channel strength; (2) Content producers with strong content creation capabilities; (3) IP operators in the IP2B2C model that possess high-quality IPs and B-end customer resources. 2. German nuclear fusion startup ProximaFusion secures record-breaking funding On Wednesday local time, German nuclear fusion startup ProximaFusion announced that it had raised €130 million (equivalent to $148 million) in a record-breaking funding round. Investors have high hopes that the company will be the first to build the world's first commercial nuclear fusion power plant. ProximaFusion's Series A funding round was co-led by CherryVentures and BaldertonCapital, marking the largest private nuclear fusion investment round in Europe to date. In recent years, market interest in nuclear fusion technology has continued to grow. Founder Securities' machinery equipment team is optimistic that the timeline for global nuclear fusion could be advanced. Currently, the European Commission (EC) has officially launched a four-week consultation period, which will help the EU establish a leading position in global nuclear fusion development and accelerate the commercialization of fusion energy. 3. Cumulative financing exceeds 1 billion yuan in the first half of the year; experts say commercial space is experiencing unprecedented development opportunities Media reports indicate that China's commercial space industry in 2025 is accelerating at an unprecedented pace towards industrialization. One of the most telling signs is the "real money" coming from the capital market. According to incomplete statistics by reporters, in the first five months of this year alone, the publicly disclosed and estimable financing amounts in China's commercial space sector have cumulatively exceeded 1 billion yuan. Recently, there have been continuous developments in the commercial space sector. LandSpace Technology Corporation's independently developed ZQ-2 Modification 2 remote sensing launch vehicle successfully started production and lifted off; Beijing CAS Space Technology Co., Ltd.'s KQ-1 remote sensing 7 launch vehicle was successfully launched; and the "Tada Hu Yang No. 1" satellite was successfully launched by the KQ-1 remote sensing 7 launch vehicle. Experts interviewed stated that after several years of cultivation, China's commercial space industry is flourishing, with enterprises in commercial satellites, commercial rockets, commercial monitoring and control, and other sectors emerging like bamboo shoots after a spring rain. The commercialization of the entire industry chain is being prioritized, and the industry chain ecosystem is continuously improving. With the synergy of policies, technology, and the market, commercial space is experiencing unprecedented development opportunities. 4. AI development brings significant changes to the industry, continuously expanding the space for the industry chain Institutions have pointed out that switching networks are the "blood vessels" of AIDC. Since entering the era of large models, as the scale of clusters has accelerated its expansion, the interconnection requirements between computing cards have rapidly increased. As the hardware core supporting the interconnection network, the industry chain space for switches has been continuously expanding. Guojin Securities believes that domestic large models are rapidly advancing from a scale of hundreds of billions of parameters to trillion and ten trillion parameters, and 800G switches will become an important driver for the rapid growth of the industry. Dell'Oro Group predicts that by 2025, the adoption rate of 800G switch ports is expected to exceed that of 400G data center switch ports, accounting for more than 25% of data center switch ports. The development of the AI industry has brought about significant changes to the switch industry. Along with the development of the domestic AI industry, domestic high-speed switches for training-side applications and domestic medium-speed switches for inference-side applications are on the verge of mass production. CPO, OCS, white-box switches, etc., are expected to become strategic highlands in the domestic switch industry, and enterprises with relevant layouts are worthy of close attention.

Macro News 1. On June 9, the State Council held its 14th thematic study session on "deepening the reform of the mechanism for the commercialization of scientific and technological achievements, and promoting the integrated development of scientific and technological innovation and industrial innovation." Premier Li Qiang of the State Council, while presiding over the study session, emphasized the need to thoroughly study and implement the important instructions of General Secretary Xi Jinping and the relevant decisions and deployments of the CPC Central Committee. Through coordinated efforts in multiple aspects, efforts should be made to break through the bottlenecks in the commercialization of scientific and technological achievements, effectively improve the efficiency of commercialization, and promote innovative development. 2. The first meeting of the China-US Economic and Trade Consultation Mechanism was held in London, UK, on the afternoon of June 9 (local time). CCTV News reporters learned that the first meeting of the China-US Economic and Trade Consultation Mechanism would continue on June 10 (local time). 3. The General Offices of the CPC Central Committee and the State Council issued the "Opinions on Further Ensuring and Improving People's Livelihoods, and Focusing on Addressing the Urgent, Difficult, Worrisome, and Anticipated Needs of the Masses." Among the proposals are to improve the mechanism for adjusting the minimum wage standard and reasonably raise the minimum wage standard; to improve the mechanism for adjusting the basic medical insurance drug list, formulate and introduce a list of innovative drugs for commercial health insurance, and better meet the multi-level drug security needs of the people; and to promote eligible agricultural migrant populations to enjoy the same rights as the registered permanent residents of the places they move to. 4. Lin Jian, spokesperson for the Ministry of Foreign Affairs, presided over a regular press conference yesterday. A reporter asked whether China would open more "green channels" for the approval of rare earth exports. Lin Jian stated that the Ministry of Commerce of China had already responded to China's export control measures on rare earths, and that information could be consulted. Industry News 1. The Beijing Municipal Bureau of Economy and Information Technology and four other departments issued the "Implementation Plan for the High-Quality Development of Beijing's Fashion Industry (2025-2027)," which proposes supporting the launch of trendy portable wearable devices and the development of new products such as artificial intelligence personal computers. It encourages the R&D and launch of high-end new car models with a stronger sense of technology and fashion, and the exploration of overseas markets. 2. It is reported that the financial regulatory authorities in a certain area of the Yangtze River Delta recently issued a notice, clearly stating that banking institutions within their jurisdiction must not absorb deposits by giving physical gifts to customers or cooperating with internet platforms to distribute membership benefits. In case of the above-mentioned situations, the local regulatory authorities require the immediate suspension of the sale of relevant products, the simultaneous removal of promotional and display materials, and the orderly withdrawal of existing businesses by the end of 2025. 3. Data from the China Passenger Car Association (CPCA) show that domestic retail sales of passenger NEVs reached 1.021 million units in May, up 28.2% YoY and 12.1% MoM. From January to May, domestic retail sales of passenger NEVs reached 4.351 million units, up 34.1% YoY. 4. The Suzhou Artificial Intelligence Industry Association plans to solicit innovative products and solutions that leverage AI technology to empower the Suzhou football team, aiming to enhance training standards and competitive performance, and support the team in achieving outstanding results in the 2025 Jiangsu Provincial Urban Football League. 5. According to "Guiyang Release", Guiyang has established a joint conference system for the development of the sports industry, forming a collective effort to promote its growth. In terms of financial support, special funds and industrial support policies have been established and utilized to provide assistance to sports products, services, projects, and enterprises that align with the support direction. 6. The Hebei Provincial Development and Reform Commission recently issued the "Notice on Several Refined Measures to Promote the Development of the Private Economy in the Energy Sector", proposing support for private enterprises to participate in the construction and operation of charging infrastructure. It aims to expand diversified investment and financing models, attracting various types of social capital to participate in charging facility construction through investment attraction and policy support. Corporate News 1. Sugon announced that Hygon Information would absorb and merge Sugon through share exchange, and its stock trading would resume. Hygon Information also announced on the same day that its stock trading would resume. 2. Changshan Pharmaceutical announced that the marketing authorization application for its Ebenatide Injection for type 2 diabetes had been accepted, with uncertainties regarding approval and timing. 3. Vohringer announced abnormal fluctuations in its stock trading and would suspend trading for verification. 4. CECPORT announced that the National Integrated Circuit Fund had recently reduced its stake in the company by 1%. 5. Chow Tai Fook announced its intention to issue H shares and list on the Hong Kong Stock Exchange. 6. In response to media reports that "the company is planning a share transfer", relevant personnel from Hosun Silicon Industry responded to a reporter from China Securities Journal on the afternoon of the 9th, stating that they had never been in contact or negotiations with TBEA or its affiliates regarding share transfer matters. 7. Ruifeng Advanced Materials announced that its senior executive, Zhao Ziyang, was under investigation by the China Securities Regulatory Commission for suspected insider trading. 8. SFI said on its interactive platform that its FINNOSafe compliant Web3 platform could support the development of businesses related to stablecoin issuers and market participants. 9. Dexin Technology announced that the sales revenue from molds and products produced by its subsidiary for solid-state battery production accounted for less than 1% of its operating revenue. 10. Yangnong Chemical stated on its interactive platform that Tetrachlorantraniliprole could replace "Chlorantraniliprole" and had good market prospects. 11. EVE announced its intention to issue H shares and list on the Stock Exchange of Hong Kong Limited. 12. Xinzhu Stock announced plans to acquire a 60% stake in Sichuan Shudao Clean Energy Group Co., Ltd., with trading resuming. 13. Maxinlin announced that its controlling subsidiary signed a computing power service contract worth 1.184 billion yuan. 14. Huasheng Stock announced plans to acquire a 100% stake in Yixin Technology, with trading suspended. 15. *ST Longyu announced that the Shanghai Stock Exchange required the company to fulfill its repurchase obligations during the delisting period. 16. Hailian Jinhui stated on the interactive platform that the company currently has no direct business revenue related to digital currency or stablecoins. Global Markets 1. The three major U.S. stock indices closed mixed, with the Nasdaq up 0.31%, the S&P 500 up 0.09%, and the Dow flat. Both the Nasdaq and S&P 500 hit new closing highs since late February. Most large-cap tech stocks rose, with Tesla up over 4%, Intel up over 2%, Google and Amazon up over 1%, and Microsoft rising slightly. Apple and Netflix fell over 1%, while Meta dropped slightly. Most popular Chinese stocks closed higher, with the Nasdaq Golden Dragon China Index up over 2%. European major indices collectively closed lower, with Germany's DAX30 down 0.62%. 2. International crude oil futures settled about 1% higher. WTI crude July futures rose 1.1%, while Brent crude August futures gained 0.86%. 3. COMEX gold futures rose 0.04% to $3,347.8/oz, while COMEX silver futures gained 2.07% to $36.915/oz. Investment Opportunities 1. Cross-Sea Flight Takes Only 5 Minutes: Hong Kong's First Drone Delivery Route Officially Launched Media reported that under Hong Kong's low-altitude economy regulatory sandbox framework, Meituan's drone first regular route officially commenced operations. The route features a "cross-sea + park" scenario, flying from Hong Kong Science Park to Ma On Shan Promenade in about 5 minutes, nearly 7 times more efficient than traditional delivery methods. Merchants like McDonald's and Pizza Hut in Hong Kong have already joined the service. Zhongtai Securities noted that China's consumer drone market size grew from 15.5 billion yuan in 2016 to 38.81 billion yuan in 2021, with a CAGR of 20.2%, and is projected to reach 62.49 billion yuan by 2026. As prices decline and the industry chain improves, the barrier for consumer purchases has significantly lowered. 2. Industry Leaders Launch Scenario-Specific Products, with ByteDance, Huawei, and Tencent Entering the Market Media reported that Baidu Intelligent Cloud recently launched a family of selected industry scenario-specific smart agents covering energy, transportation, healthcare, and environmental sectors. In addition to Baidu, companies such as ByteDance, Huawei, Tencent, and Kunlun Tech have also been actively deploying AI Agents. A research report by Guoyuan Securities pointed out that major internet companies are competing in the Agent sector to secure new interaction entry points in the AI internet era. AI Agents inherit the core genes of the APP era, possessing a certain degree of versatility and subscription systems. Agents have advantages in service-oriented delivery, network effects, and developer ecosystems, and can directly invoke APPs to complete designated tasks. Universal Agents are widely permeating various aspects of users' work and lives, and are expected to surpass the original APP ecosystem. 3. The industry has a vast market size and is becoming an important driving force for economic development. According to media reports, the marine economy has shown a positive development trend this year, with the gross marine product in Q1 reaching RMB 2.5 trillion, up 5.7% YoY. The development of the marine industry has remained stable and positive, with the acceleration of new quality productive forces. The surging blue new momentum is becoming an important driving force for China's economic development. The marine economy has a vast market size and broad development space. In 2023, global marine trade reached US$2.2 trillion, accounting for about 7% of the total global trade, with service trade reaching US$1.3 trillion and merchandise trade reaching US$900 billion. The Organisation for Economic Co-operation and Development (OECD) predicts that by 2030, the economic value of the ocean will exceed US$3 trillion, equivalent to the size of the world's fifth-largest economy. Domestically, according to data released by the Ministry of Natural Resources, in 2024, China's total marine economy exceeded RMB 10 trillion for the first time. Northeast Securities pointed out that the 2025 government work report mentioned "launching large-scale application demonstration initiatives for new technologies, new products, and new scenarios to promote the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology." This is the first time that deep-sea technology has been included in the government work report. Deep-sea technology enhances detection capabilities in deep-sea areas, and the development of deep-sea technology holds both economic and strategic significance. With the support of top-level planning, emerging fields such as deep-sea technology are expected to accelerate their development. 4. An important direction in the new round of technological competition for NEVs, with significant acceleration in the R&D progress of such products. It is reported that as the technological breakthroughs in the NEV industry enter the "deep water zone," the evolution of the technological path of power batteries, as a core component, has attracted significant market attention. Among them, solid-state batteries have become an important direction in the new round of technological competition for NEVs. In terms of relevant standards, the "Judgment Method for All-Solid-State Batteries" has been released. In the market, R&D progress in the field of solid-state batteries has significantly accelerated. Driven by multiple factors, several publicly listed firms have clarified the timetable for the mass production of solid-state batteries, accelerating the industrialisation process of solid-state batteries. Zhongtai Securities pointed out that in April 2025, the Ministry of Industry and Information Technology (MIIT) introduced new national standards for power batteries, imposing stricter requirements on battery thermal runaway and thermal propagation. It also issued documents urging the acceleration of top-level construction in the solid-state battery industry, indicating a proactive and encouraging stance in national policies. Meanwhile, from the perspective of the capital expenditure cycle, capital expenditures for new-type battery technologies, primarily semi-solid-state, have significantly increased. The solid-state battery industry is expected to drive the lithium battery industry to complete a new round of industrial technology upgrades and iterations under the influence of the triple factors of "market demand + policy encouragement + industrial upgrading."

[Xiangfenghua: Sichuan's 60,000-mt Integrated Anode Material Project Expected to Commence Production by the End of 2025] On June 3, 2025, Xiangfenghua disclosed a survey reception announcement, stating that the company had received a survey from eight institutions, including Shoupu Asset Management, Northeast Securities, Cinda Securities, Zhongtai Securities, and China Post Securities, on May 30. It is understood that Xiangfenghua has reserves for the production of silicon carbon anode, silicon oxide anode, and hard carbon anode materials. The silicon carbon anode products have been handed over to battery producers for testing, with small-scale trial production planned for 2025. The hard carbon anode is currently in the pilot stage, with industrialisation trials scheduled for 2025. Relevant products for solid-state and semi-solid-state batteries have also been handed over for testing, with small-scale trial production planned for 2025. Currently, the company has a graphite anode material capacity of 90,000 mt, and some ongoing construction projects are progressing as planned.

The latest strategic viewpoints from the top ten securities firms have just been released, as detailed below: Soochow Securities: June may mark the starting point of a new round of "East Rising, West Declining" trades The US dollar cycle is pivotal to the "East Rising, West Declining" trade. Historical experience shows that during periods of global liquidity easing and a weakening US dollar, non-US assets tend to strengthen, and the Chinese market will also benefit. Looking ahead, a weak US dollar remains the baseline assumption. Due to multiple factors such as ongoing disruptions from Trump's policies, the US government's debt pressure, and potential risks in the fundamentals, the US dollar is expected to trend weaker. Since the US dollar index turned down again in mid-May, it has once again fallen below the 100 mark. It is judged that the US dollar will continue to decline in June, possibly breaking below the previous low. The liquidity spillover driven by a weak US dollar will lead the A-share market to embark on a new round of "East Rising, West Declining" trades. In recent years, the value/growth style of the A-share market has been increasingly influenced by the US dollar cycle, specifically showing that growth stocks tend to outperform during periods of a weak US dollar. As June approaches, the technology sector will witness a series of catalytic events, and its prospects are expected to remain robust. Meanwhile, the valuations and liquidity of growth stocks will also benefit from a weak US dollar environment, potentially exhibiting better resilience. In terms of specific allocation directions, the main themes and industrial trends to focus on include: AI edge devices (including AI phones, AI glasses), AI large models, humanoid robots, controllable nuclear fusion, deep-sea technology, and autonomous driving. Zhongtai Securities: Maintaining the "switch from high to low" viewpoint at the current juncture The current market is at a critical period marked by the interplay of domestic and foreign policy variables. Domestically, the "15th Five-Year Plan" sets the tone, and reforms in public funds may reshape the market. Externally, intensifying tariff disputes between Europe and the US, as well as increased policy uncertainty within the US, will all have complex impacts on the market. At the current juncture, the "switch from high to low" viewpoint is still maintained, with a relatively optimistic stance on the technology sector. The overall market is expected to continue rotating rapidly among various hot topics in Q2. Investors should avoid chasing highs and instead focus on bottom-fishing opportunities, with this allocation logic remaining unchanged. 1) While maintaining a base portfolio of stable assets such as dividend stocks, gold, long-term bonds, and blue chips, focus on opportunities to bottom-fish in safety-related assets and technology stocks; 2) The high growth momentum in upstream AI computing power, servers, etc., as seen from Q1 earnings reports, is expected to continue into H2. Moreover, the update of the new version of DeepSeek may trigger investors' risk appetite for the technology sector; 3) The Trump administration has recently intensified technology restrictions on industries such as chips, coupled with China's increased emphasis on technology at the policy level. Among these, the direction of domestic substitution, represented by semiconductors, will also present certain opportunities. Overall, in Q2, the fundamentals of core city real estate and other endogenous momentum are gradually showing a "turning point," but total data may remain resilient under the "rush to switch exports." Current overall policies still maintain strong determination, but there is a high level of attention on the capital market, which may provide some support to the market. Hua Jin Securities: June Continues to Fluctuate Upward with Technology and Consumption Remaining the Main Themes In June, A-shares may continue to fluctuate upward. (1) Policies in June may be more proactive, with some uncertainty regarding external events. First, positive policies in June may accelerate implementation. Second, external events such as Sino-US tariff negotiations in June face some uncertainty. (2) The fundamentals in June may continue to improve. First, economic data in June may continue to show strength: firstly, the Dragon Boat Festival holiday and the "618" shopping season may keep consumption growth at a high level; secondly, overseas restocking may lead to a rebound in export growth in June; finally, accelerated policy implementation may maintain high growth in manufacturing and infrastructure investment in June, although real estate investment growth remains weak. Second, profit growth in June may continue to be in a recovery cycle. (3) Liquidity in June may remain loose. First, repeated expectations of interest rate cuts overseas have limited impact on domestic easing. Second, the inflow of funds into the stock market in June may improve; historically, foreign and margin financing flows tend to increase in June; after the holiday, margin financing and foreign capital may also return. Technology and consumption remain the main themes, with some core assets and cyclical sectors possibly offering investment opportunities. First, new consumption is likely to generate excess returns in June; second, policy encouragement points to TMT and consumption, with high-growth industries mainly concentrated in non-ferrous metals, TMT, and machinery. It is recommended to continue to allocate on dips: first, sectors with upward policy and industry trends such as computer (domestic software, autonomous driving), robotics, military, media (AI applications, gaming), electronics (semiconductors), and communications (computing power); second, sectors where fundamental expectations may marginally improve, including innovative drugs, electric vehicles, food, social services, trade retail, non-ferrous metals, and chemicals. China Galaxy: Technology Will Remain the Medium and Long-Term Investment Theme Recently, the sector rotation speed has increased, and the market's volatile pattern has not changed, with no significant increase in trading volume, still dominated by existing players. There is considerable uncertainty in the external market. On May 29, the US Federal Circuit Court of Appeals granted the Trump administration's request to temporarily suspend the previous ruling by the US International Trade Court. Although a phased tariff agreement between China and the US has been reached, temporarily alleviating trade pressure, the Trump administration's policies remain unpredictable. In the short term, the market may continue to maintain a fluctuating trend. Attention should be paid to changes in external tariffs and the pace of domestic policy implementation. With the support of a series of domestic policies, the market's adjustment space is limited. Meanwhile, several major financial policies are expected to be announced during the Lujiazui Forum from June 18 to 19, which are likely to support market expectations. It is recommended to focus on structural opportunities. In the long term, the trend of the A-share market will still reflect the principle of "taking our own path as the main focus". As the Central Huijin Investment Ltd. effectively plays the role of a "stabilization fund" and policies vigorously promote the entry of medium and long-term funds into the market, the A-share market will have a more solid foundation for stable operation. Allocation opportunities across three main themes: First, assets with a relatively high safety margin. Against the backdrop of significantly increased uncertainty in the external environment, the dividend sector, which has relatively strong earnings certainty and overall stable dividend returns, possesses defensive attributes. Second, the logic of the "technology narrative" in the A-share market is clear. The revised restructuring measures will help promote the participation of early-stage technology innovation enterprises in mergers and acquisitions. Technology will remain the main theme for medium and long-term allocation, with short-term focus on sub-sectors with lower valuations. Third, the big consumption sector boosted by policies. Economic data for April shows that the trade-in policy for consumer goods continues to be effective. Recently, the concept of new consumption has been repeatedly active. As uncertainty in the external environment increases, expanding domestic demand has become a long-term strategic move, highlighting the importance of boosting consumption. Dongguan Securities: The market's overall risk appetite is expected to receive systematic support. From the perspective of the market environment in June, overseas, the US tariff policy has been fluctuating, and the subsequent path of interest rate cuts by the US Fed will highly depend on subsequent economic data and tariff negotiation progress. Domestically, with the easing of Sino-US trade disputes, the implementation of a series of incremental policies by the "one bank, one bureau, one commission", and the concerted efforts of all parties to promote the effective implementation of established policies and accelerate the strengthening of incremental policy reserves, all these provide strong support for the domestic economic fundamentals. In the capital market, the current concerted efforts to stabilize the capital market have injected key momentum into boosting investor confidence. Looking ahead to June, as Sino-US trade relations tend to ease, quasi-stabilization funds have played a crucial supporting role in hedging tail risks in the market. With the concerted efforts of all parties to promote the effective implementation of established policies, accelerate the strengthening of incremental policy reserves, and the continuous entry of medium and long-term funds into the market, it is expected to continuously improve the market's microstructure and enhance investor confidence. Against the backdrop of the combined forces of policies and funding, the market's overall risk appetite is expected to receive systematic support. However, considering that there may be certain selling pressure above, the market may continue to fluctuate in the short term. In the medium term, supported by the economy's resilience and the accumulation of policy tools, the broader market still has upward momentum. Sector Allocation: Overweight financials, utilities, non-ferrous metals, and TMT. BOC Securities: Exports May Exceed Expectations This Year From overseas industry inventory perspectives, most sectors are in the mid-stage of restocking except midstream industries like automobiles, machinery equipment, and transportation equipment. Downstream consumer goods-related sectors show more pronounced restocking, reflecting resilient overseas demand. Leading indicators suggest short-term overseas restocking demand will likely persist, with potential for exports to surpass expectations this year. Market-wise, since May, sectors tied to external demand have outperformed. The Geneva agreement between China and the U.S. temporarily boosted market sentiment, while April's stronger-than-expected exports corrected overly pessimistic expectations. Subsequent uncertainties around export and external demand strength remain the market's focus. Unlike 2018, tariff policies now pose significantly reduced impacts on domestic fundamentals and markets. Fundamentally, ample policy buffers mitigate economic downside risks, with domestic demand data and tariff progress influencing policy expectations. Market-wise, upside room depends on economic recovery strength, while "quasi-stabilization funds" contain downside risks. Uncertainty from Trump-era trade policies may prolong "diversion trade," with resilient demand potentially driving exports above expectations and strengthening external demand chains. GF Securities: China-U.S. Relations, Fiscal Stimulus, and DeepSeek's Tech Breakthrough May Trigger A-Share Market Breakout After April's oversold rebound, A-shares fluctuated rangebound near pre-reciprocal tariff levels, with only innovative drugs showing sectoral trends amid mostly thematic rotations. Looking ahead, China-U.S. relations, fiscal stimulus, and DeepSeek's tech milestone could serve as key triggers to escape this tight range. Absent domestic fiscal or bilateral progress, tech sector developments may prove pivotal. After three months of adjustment, tech stocks—especially AI-related segments—now meet prerequisites for a rebound: 1) TMT turnover ratios hover at the lower bound of 2023's AI narrative range, signaling potential momentum; 2) Since April's reciprocal-tariff rebound, margin balances stagnated at yearly lows, leaving room for incremental funding. Thus, June's concentrated tech giant product launches may prove decisive. Ping An Securities: New Quality Momentum Gathers Strength, Tech Growth Breaks Through Overseas, the US tariff policy faces multiple uncertainties from domestic judicial rulings and external negotiations, while Nvidia's Q1 results exceeded expectations again. Domestically, the manufacturing sector's prosperity margin rebounded in May, with high-tech industry profits showing positive trends; expectations for financial policies have increased. Overall, the current changes in the external environment still carry uncertainties, and the importance of self-reliance and controllability in domestic technology and the resilience of domestic demand continue to rise. Domestic policy support and the positive development of industries towards innovation are expected to continue to support the medium-term upward potential of the equity market. Structurally, attention should be paid to two main lines: First, the growth style represented by domestic technology and high-end manufacturing, such as the defense and military industry with upward industry prospects, and the direction of self-reliance and controllability in technology represented by semiconductors; second, high-quality consumer assets (new consumption/pharmaceutical and biological, etc.) that benefit from policies supporting the expansion of domestic demand. Huaxi Securities: A-shares in June Still in a Window Period for Market Recovery A-shares in June remain in a window period for market recovery. Recently, market trading sentiment has pulled back, mainly due to the repeated changes in the US tariff policy overseas. In addition, the slow pace of Sino-US trade negotiations may partly be due to tactical considerations in negotiations. Subsequent Phase II Sino-US consultations will remain a key influencing factor for market risk appetite. On the other hand, the strength of domestic medium and long-term patient capital is growing. By promoting the construction of long-term market stabilization mechanisms and signaling regular "market support," regulators will strongly support the bottom range of A-shares. ·In terms of industry allocation, maintain a moderately balanced allocation. Attention should be paid to precious metals, public utilities, new consumption, AI applications (software, hardware), etc. In terms of themes, attention should be paid to: military industry, self-reliance and controllability, mergers and acquisitions, etc. Everbright Securities: Consumption is Expected to Remain One of the Key Momentums for Economic Recovery The most severe period of short-term external risk disturbances may have passed, but vigilance is still needed regarding potential reversals in Trump's subsequent policies. Recently, domestic policies have remained actively implemented, and it is expected that subsequent policies will continue to be rolled out. With the US and China hitting the "pause" button on "reciprocal tariffs" for 90 days, exports may maintain high growth in the short term, and consumption is expected to remain one of the key momentums for economic recovery. Amidst the interplay of internal and external factors, it is expected that the index will remain volatile overall in June. Definite Main Lines: 1) Domestic consumption. Expanding domestic demand has been a key focus of recent domestic policies, and it is expected to continue to receive policy catalysts in the future. In addition, the overall performance of the consumer industry is more resilient. Attention should be paid to industries such as household goods, food processing, professional services, and leisure food. 2) Domestic substitution. Attention should be paid to two clues: performance certainty and thematic investment. The former focuses on industries with a high proportion of imports from the US and strong domestic supply capabilities, including publishing, decoration materials, etc. The latter focuses on industries with a high proportion of imports from the US but with domestic supply capabilities expected to improve, such as aviation equipment, medical devices, animal health, and chemical pharmaceuticals. 3) Underallocated sectors by funds: The "Action Plan for Promoting the High-Quality Development of Public Funds" may have a profound impact on the asset allocation of the fund industry. Some sectors that are underallocated by funds are worth paying attention to in the medium and long-term, including banking, non-banking financial services, utilities, transportation, and other industries. However, in the short-term, it is necessary to be cautious about the potential expectation deviations that may arise from over-interpretation.

This week, Hong Kong stocks generally maintained their strong momentum, with the weekly performances of the three major indices varying. By the close of trading, the Hang Seng Index (HSI) had risen by 1.10% week-on-week to close at 23,601.26 points; the Hang Seng Tech Index had fallen by 0.65% week-on-week to close at 5,246.87 points; and the Hang Seng China Enterprises Index (HSCEI) had risen by 1.36% week-on-week to close at 8,583.86 points. Note: Weekly performance of the HSI since the beginning of the year Notably, the HSI has achieved seven consecutive weeks of gains. Medium and long-term optimism becomes consensus among institutions Huatai Securities pointed out that despite uncertainties surrounding tariff issues and potential short-term disruptions due to high US Treasury yields, the risk premium of Hong Kong stocks has significantly pulled back, and the easing of tail risks in the economy will drive up the market's center of gravity. Morgan Stanley recently raised its target for the HSI to 24,500 points by 2026, emphasizing the valuation reshaping opportunities brought about by structural improvements in the Chinese stock market. However, CICC cautioned about short-term risks, believing that current market sentiment has recovered to a cyclical high, and the marginal effect of policy efforts may weaken. 3SBIO leads the market gains this week In the list of weekly gainers, 3SBIO (01530.HK) led the market with a weekly gain of 57.38%. The pharmaceutical company's collaboration agreement with Pfizer on a PD-1/VEGF bispecific antibody drug set a new industry record, with an upfront payment plus milestone payments totaling up to $6 billion, creating a new benchmark for out-licensing of domestically developed innovative drugs. Another pharmaceutical stock that performed well was ImmuneOnco Biopharmaceuticals (01541.HK), which rose by over 36% week-on-week. The company recently announced clinical progress, including the successful enrollment of three patients in the Phase Ib clinical trial of its first dual-target large molecule drug for autoimmune diseases, Amurevup alpha (CD47xCD20, IMM0306), targeting neuromyelitis optica spectrum disorder (NMOSD), with all patients receiving the drug smoothly. In addition, Alibaba Pictures surged by over 50% this week. The company recently announced its renaming to "Damai Entertainment Holdings Limited," focusing on the layout of the offline entertainment ecosystem and enhancing its brand recognition in the overall entertainment market. Subsequently, Huatai Securities and Citi raised their target prices to HK$0.75 and HK$0.92, respectively. Both Datang Gold and Lingbao Gold benefited from the trend of international gold prices, rising by 28.13% and 27.44%, respectively. In terms of news, COMEX gold continued to strengthen after breaking through $3,300 this week and is currently trading near $3,353. Technical pullback and signs of capital rotation emerge in the market on Friday Despite maintaining the recent upward trend overall this week, today's performance was not ideal. By the close of trading on Friday, the HSI had risen by 0.24%, the Hang Seng Tech Index had fallen by 0.09%, and the HSCEI had risen by 0.31%. The futures market showed significant divergence, with the pharmaceutical and gold sectors bucking the trend to strengthen, while the real estate sector was weighed down by development and investment data, and tea beverage stocks saw a correction as investors took profits. Pharmaceutical stocks were boosted by multiple positive factors. By the close of trading, Hengrui Medicine (01276.HK), Luye Pharma (02186.HK), and Innovent Biologics (01801.HK) had risen by 25.20%, 5.74%, and 4.18%, respectively. Note: Performance of pharmaceutical stocks In terms of news, pharmaceutical stocks have recently been receiving a series of positive developments, including the aforementioned agreement between Pfizer and 3SBio, as well as the strong debut performance of Hengrui Medicine on its first day of trading in Hong Kong. Zhongtai Securities stated that since 2024, despite monthly fluctuations in overseas CPI data, there is an expectation of a gradual shift towards interest rate cuts, with an anticipated improvement in investment and financing conditions. It is expected that integrated CRO/CDMO companies primarily reliant on overseas revenue, as well as domestic preclinical CRO companies, will see opportunities for valuation recovery. The first-day performance of Hengrui Medicine's H shares attracted significant market attention, with the stock surging over 30% during intraday trading. The company received over 450 times oversubscription during its IPO phase, highlighting the global competitiveness of Chinese innovative pharmaceutical companies as international institutions scrambled to acquire shares. The safe-haven attribute of the gold sector became prominent. By the close of trading, Lingbao Gold (03330.HK), Chifeng Jilong Gold Mining (06693.HK), and Zijin Mining (01815.HK) had risen by 9.16%, 3.28%, and 2.63%, respectively. Note: Performance of gold stocks On the news front, spot gold prices continued to rise, currently standing above $3,350 per ounce. CITIC Futures pointed out that the passage of Trump's "Tax Cuts and Jobs Act" through the House of Representatives has increased the likelihood of large-scale tax cuts being implemented, with expectations rising for a continued climb in the US deficit rate. This aligns with Moody's downgrade of the US credit rating, as the disorderly expansion of debt leads to a gradual contraction in the US dollar's creditworthiness, providing solid support for the medium and long-term bullish outlook on gold. Louise Street, Senior Market Analyst at the World Gold Council, stated that the macroeconomic situation remains difficult to predict, and this uncertainty may bring further upside potential to gold prices. As the turbulent situation persists, the demand for gold as a safe-haven asset from institutional, individual, and official sectors may further increase in the coming months. Real estate stocks were weighed down by development and investment data. By the close of trading, Yuexiu Property (00123.HK), Ronshine China (03301.HK), and China Vanke (02202.HK) had fallen by 2.68%, 1.44%, and 0.79%, respectively. Note: Performance of real estate stocks In terms of news, data from the National Bureau of Statistics (NBS) showed that from January to April, national real estate development investment reached 2,773 billion yuan, a year-on-year decrease of 10.3%. Among this, residential investment was 2,117.9 billion yuan, down 9.6%. From January to April, the sales area of newly-built commercial housing reached 282.62 million m², down 2.8% YoY, with the decline narrowing by 0.2 percentage points compared to the January-March period. Tea beverage stocks weakened slightly By the close, Cha Panda (02555.HK), Tenfu (06868.HK), and Mixue Group (02097.HK) fell by 4.19%, 4.09%, and 1.40%, respectively. Note: Performance of tea beverage stocks In terms of news, most tea beverage stocks, including Cha Panda, weakened, which was related to profit-taking by some investors. Taking Mixue Group as an example, since its listing, the company's shares have risen by over 150% in total. Stocks with abnormal movements NetEase Cloud Music rises over 5%, with Q1 gross profit up nearly 14% QoQ NetEase Cloud Music (09899.HK) rose by 5.32% to close at HKD 217.60. In terms of news, NetEase Cloud Music's net revenue for the first quarter of this year was RMB 1.858 billion, with a gross profit of RMB 683 million, corresponding to a gross profit margin of 36.7%. Bilibili rises over 4%, with Q1 results exceeding expectations Bilibili-W (09626.HK) rose by 4.35% to close at HKD 146.40. CMB International released a research report stating that Bilibili announced its financial results for the first quarter of 2025, with total revenue increasing by 24% YoY to RMB 7 billion, in line with market consensus expectations. Adjusted net profit reached RMB 362 million, turning around from a net loss of RMB 456 million in the first quarter of 2024 and exceeding market expectations of RMB 248 million. For the second quarter of this year, CMB International expects Bilibili to maintain a 20% YoY revenue growth rate. Meanwhile, benefiting from the strong momentum of its advertising and mobile gaming businesses, its profit margin will further expand.

Macro News 1. On May 16, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. It was reported that the US Department of Commerce's Bureau of Industry and Security issued a notice, regarding the use of Huawei's Ascend chips as a violation of US export controls. Lin Jian pointed out that the US has generalized the concept of national security, abused export controls and "long-arm jurisdiction," and unjustifiably imposed malicious blockades and suppressions on China's chip products and AI industry. This seriously violates market rules, severely disrupts the stability of the global industrial and supply chains, and significantly harms the legitimate rights and interests of Chinese enterprises. China firmly opposes this and will never accept it. 2. The National Conference on Optimizing Tax Refund Policies for Departing Travelers and Expanding Inbound Consumption was held in Beijing on May 15. The conference emphasized that local commerce authorities should actively collaborate with relevant departments to accelerate the expansion of stores, increase the variety of goods, and improve services. Efforts should focus on increasing the coverage of tax refund stores, enhancing the attractiveness of tax refund goods, and strengthening the sense of gain for overseas travelers, thereby expanding inbound consumption and making significant contributions to vigorously boosting consumption and promoting sustained economic rebound. 3. According to data from the National Bureau of Statistics (NBS), in 2024, the average annual salary of employees in urban non-private units nationwide was 124,110 yuan, an increase of 3,412 yuan from the previous year, representing a nominal growth of 2.8% and a comparable growth of 2.6%. In the same year, the average annual salary of employees in urban private units nationwide was 69,476 yuan, an increase of 1,136 yuan from the previous year, representing a nominal growth of 1.7% and a comparable growth of 4.0%. Industry News 1. The China Securities Regulatory Commission (CSRC) issued the Decision on Amending the Measures for the Administration of Major Asset Restructuring of Publicly Listed Firms. It mentions encouraging private equity funds to participate in the mergers and acquisitions (M&A) and restructuring of publicly listed firms. A "reverse linkage" mechanism will be implemented between the investment period of private equity funds and the lock-up period for shares acquired through restructuring. Specifically, if the investment period of a private equity fund reaches 48 months, the lock-up period for shares in third-party transactions will be shortened from 12 months to 6 months, and for shareholders other than the controlling shareholder, actual controller, and their affiliated persons in restructuring listings, the lock-up period will be shortened from 24 months to 12 months. 2. The National Financial Regulatory Administration recently approved China Life Asset Management Co., Ltd. to participate in the third batch of pilot reforms for long-term investment of insurance funds. China Life Asset has collaborated with relevant institutions to successively launch three phases of the Honghu Fund. As of early March 2025, the first phase of the Honghu Fund has successfully invested 50 billion yuan. On March 5, 2025, the National Financial Regulatory Administration officially approved the second phase of the Honghu Fund, which plans to invest in the market in the near future, primarily focusing on high-quality publicly listed firms with large market capitalization, good liquidity, and significant market influence. 3. Several industry insiders from the public fund sector have stated that recent analyses suggesting that the public fund assessment benchmark has led to market portfolio adjustments are inaccurate, unprofessional, and lack basic common sense and evidence. There has been no large-scale position adjustment in public funds recently. 4. With the conclusion of the new Sino-US tariff agreement, transportation demand has increased, and liner companies have gladly announced freight rate hikes. The freight rate index for the US East Coast route stood at 1,455.0 points, marking a 21.5% increase WoW. The freight rate index for the US West Coast route reached 1,813.1 points, showing a 23.2% increase WoW. 5. Last night, E Fund Management announced that renowned fund manager Zhang Kun would no longer serve as Deputy General Manager due to work adjustments and would focus on investment management in the future. An insider from E Fund Management confirmed to reporters that after stepping down, he would continue to hold the position of fund manager and devote himself entirely to investment management. 6. The National Copyright Administration, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the Cyberspace Administration of China jointly launched the "Sword Net 2025" special campaign to combat online copyright infringement and piracy. The campaign, which will run from May to November, will focus on copyright rectification in audiovisual works, animation and gaming, computer software, online storage and transmission, online sales, and streaming smart terminals. 7. The General Office of the National Data Administration issued the "2025 Action Plan for Building a Digital China". It proposes to deeply explore AI application scenarios and actively promote the construction of high-quality AI datasets. Efforts will be made to develop new-generation smart terminals and intelligent manufacturing equipment, such as intelligent connected NEVs, AI-powered smartphones and computers, and intelligent robots. 8. The Ministry of Finance and the National Financial Regulatory Administration issued a notice to accelerate the digital development of bank confirmation letters. Focusing on accelerating the digital development of bank confirmation letters, the notice aims to establish a secure, convenient, efficient, and cost-effective bank confirmation letter system. Adhering to the principles of safety first and efficiency priority, it seeks to increase the number of entities accessing the bank confirmation letter platform, raise the proportion of digital bank confirmation letters, and promote the implementation of large-scale application scenarios by consolidating the development foundation, enhancing work efficiency, and innovating methods and means. Corporate News 1. Kweichow Moutai announced that as of now, it has repurchased a cumulative total of 2.6421 million shares, with a total payment amount of 4.05 billion yuan. 2. CATL announced the offering price of its H shares, set at HK$263.00 per H share. It is expected that the H shares will be listed on the Hong Kong Stock Exchange on May 20. The company announced that its subsidiary intends to participate in an industrial investment fund with an investment of no more than $225 million. 3. BYD will be included in the Hang Seng Tech Index. 4. Telink Semiconductor announced that the shareholding ratio of the National Integrated Circuit Industry Investment Fund has decreased to 6.95%. 5. Shanghai Tunnel Engineering announced that its controlling shareholder intends to increase its shareholding in the company by 250 million to 500 million yuan. 6. Guangzhou Baiyun International Airport announced its plan to jointly establish a duty-free company with China Duty Free Group and others with an investment of 4.5 million yuan to operate businesses related to duty-free shops in Guangzhou city. 7. Advanced Micro-Fabrication Equipment Inc. (AMEC) released an announcement on the record of investor relations activities, stating that Unitree is a terminal customer of the company. 8. ST Mumiao Pharmaceutical announced the removal of other risk warnings and the change of its name to Tianmu Pharmaceutical starting from the opening of the market on May 20. 9. ST Zhongtai Chemical announced the removal of other risk warnings and the change of its stock abbreviation to "Zhongtai Chemical" starting from the opening of the market on May 20. 10. *ST Aonong announced the removal of delisting risk warnings and other risk warnings, and the change of its stock abbreviation to "Aonong Biotech". 11. Binhai Energy announced its plan to acquire 100% equity of Cangzhou Xuyang Chemical Co., Ltd., and its stock resumed trading. 12. AVIC High Technology announced that its wholly-owned subsidiary plans to invest 918 million yuan to enhance its capabilities in civil aviation composite material components. 13. Kinlita announced that the board of directors did not agree to the shareholder's proposal to convene an extraordinary general meeting. 14. *ST Kexin announced the removal of delisting risk warnings and the change of its stock abbreviation to Kexin Development. 15. Tuoxin Pharmaceutical announced that Ivosidenib had cumulatively reduced its shareholding by 1.3128 million shares from March 14 to May 15, 2025. Global Markets 1. The three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average rising 0.78% and accumulating a 3.41% gain for the week; the S&P 500 index rising 0.7% and accumulating a 5.27% gain for the week; and the Nasdaq index rising 0.52% and accumulating a 7.15% gain for the week. Most popular Chinese ADRs rose, with the Nasdaq Golden Dragon China Index closing up 0.52% and accumulating a 4.56% gain for the week. The three major European stock indices all closed higher, with the German DAX index rising 0.3%. 2. The settlement prices of international crude oil futures rose by more than 1%, accumulating a gain of more than 2% for the week. WTI crude oil futures for June rose 1.41%, accumulating a 2.41% gain for the week; Brent crude oil futures for July rose 1.36%, accumulating a 2.35% gain for the week.

Countdown: 7 days left! The 2025 SMM (3rd) Wire and Cable Industry Development Conference is just around the corner! Conference Name : 2025 SMM (3rd) Wire and Cable Industry Development Conference Date : May 22-23 Venue : DoubleTree by Hilton Suzhou Wuzhong The conference is packed with details! Every session and process has been meticulously designed to ensure efficiency and order. Here are the specifics: ►Delegate Badges Red, blue, green... What do the different colors of the delegate badges represent? Confused? This year's conference badges can be distinguished by color, and the delegate's identity information will be printed and attached to the badge! If you're looking for suppliers — look for people with blue lanyards! If you're looking for buyers — look for people with green lanyards! Have difficulties? Have needs ? — look for people with yellow lanyards! We won't let you miss any business opportunities! ►Conference Program Cover: 1. Display of conference information 2. Display of logos of organizers, co-organizers, sponsors, supporters, etc. Back Cover: 1. QR code for the conference mini-program 2. "SMM APP" What does the conference program include? ►Meal Vouchers Note: If you have additional meal requirements, please consult the hotel directly. ►Networking Supply and Demand Wall ● Display of companies' external supply and demand information ● Efficient appointments, communication, and networking ● Self-service supply and demand information display area (Note: The conference venue will be open to delegates 30 minutes before the conference starts. Please arrive on time.) Venue Hotel: DoubleTree by Hilton Suzhou Wuzhong Hotel Address: Building 4, No. 99 Junyi Road, Wuzhong District Hotel Phone: +86-512-66580000 Part.0 1 Reservation Method: Phone Reservation Phone Reservation: Irene 15950017060 2 Please mention that you are making a reservation for the "2025 SMM (3rd) Wire and Cable Industry Development Conference". 1. As the event is approaching, orders cannot be canceled after booking completionZ62/>2. The hotel has a limited number of rooms of each type, available on a first-come, first-served basis. 3. The hotel only guarantees accommodation for delegates during the conference period as per the reservation. For any extension requests beyond the booking period in this form, please contact the hotel directly. 4. The room rates listed below are the lowest prices we have negotiated, but we cannot guarantee they match the hotel's seasonal special rates offered to the general public. Part.0 3 Notes Conference Venue Hotel: DoubleTree by Hilton Suzhou Wuzhong Hotel Address: Building 4, No. 99 Junyi Road, Wuzhong District Hotel Phone: +86-512-6658000Z71/># Conference Hotel: Room Types & Conference Period Special Rates # Nearby Alternative Hotels Hilton Garden Inn Suzhou Wuzhong (Located 20 meters from the conference hotel, approximately 1-minute walk) # Recommended Nearby Hotels Since you're in Suzhou for the conference, why not explore the city's charm as the "Oriental Venice"? Experience the classic Jiangnan ambiance of this water town! 0 1 Suzhou Classical Gardens Includes the Humble Administrator's Garden, Lingering Garden, and Tiger Hill Scenic Area three iconic gardens. Features: The Humble Administrator's Garden ranks first among China's four famous gardens, the Lingering Garden is renowned for its lake stones, and Tiger Hill earns the title "No.1 Hill in Wu" (iconic landmarks: Leaning Tower and Sword Pool). Highlights: ✅ Waterscape Masterpiece: Water occupies one-third of the garden, with pavilions and towers built around it, creating a "changing scenery with every step" effect. ✅ Four Seasons Scenery: Enjoy azaleas in spring, lotuses in summer, chrysanthemums in autumn, and snow views in winter. ✅ Architectural Gems: Don't miss the Fragrance Far Hall (main hall), 36 Mandarin Ducks Pavilion (exquisite murals), and Small Flying Rainbow (sole corridor bridge). 1️⃣ Best Visit Period: March-May (spring flower exhibitions) or September-November (autumn foliage), avoiding peak summer crowds. 2️⃣ Recommended Duration: 2-3 hours (half-day for in-depth exploration). 3️⃣ Combined Itinerary: Suzhou Museum (designed by Ieoh Ming Pei), Lion Grove Garden, Pingjiang Road Historic DistrictZ95/>Location: 202 Northeast Street, Gusu District (Humble Administrator's Garden); 8 Tiger Hill Gate (Tiger Hill); 338 Liuyuan Road (Lingering Garden). 0 2 Zhouzhuang Water Town China's "No.1 Water Town" famous for its Ming-Qing architecture (e.g., Twin Bridges, Shen Hall) and nighttime light shows. Opening Hours: 08:00-17:00. Separate tickets required for night tours. Must-Visit Attractions 1️⃣ Double Bridges (Key Bridges) : Comprising Shide Bridge and Yong'an Bridge, they inspired Chen Yifei's oil painting *Memory of Hometown*. The reflections at dusk are picturesque. Photography Tips : Use a wide-angle lens to capture the symmetrical composition of the bridge arches and flowing water. 2️⃣ Shen Hall : The residence of the descendants of Shen Wansan, a wealthy merchant in the Jiangnan region. It features a seven-courtyard, five-gatehouse layout. Must-sees include the Songmao Hall's wood carvings and the story of "Wansan's Trotter." 3️⃣ Fu'an Bridge : The oldest bridge in Zhouzhuang, it combines bridge and pavilion architecture. Legend has it that walking across it three times brings success in one's career (Zhu Rongji visited it three times). 4️⃣ Zhang Hall : An official residence from the Ming Dynasty, it boasts a unique design where "sedan chairs enter through the front door and boats pass through the house." The back garden features a serene bamboo grove. 5️⃣ Night Tour of Zhouzhuang : Eight Night Tour Products: Night Show (Kunqu Opera), Night Banquet (Wansan Family Feast), Night Meditation (Blessings at Quanfu Temple). Light Show: On weekends, the neon lights of the twin pagodas and the ancient temple create a scene reminiscent of *Spirited Away*. Location: No. 43 Quanfu Road, Zhouzhuang Town, Kunshan City 0 3 Tongli Ancient Town Scenic Area Admission Fees ● Daytime Combo Ticket: 100 yuan (includes 8 major attractions such as Tuisi Garden, Pearl Tower, and Chongben Hall). Night Tour Ticket: 50 yuan. ● Free Admission Policy: Children aged 6 or under (inclusive) or those under 1.4 meters tall (with valid ID). ● Opening Hours: April-October (7:30-17:30); November-March (7:30-17:15). Recommended Must-Visit Attractions 1. Tuisi Garden: A UNESCO World Heritage Site and a representative work of late Qing Dynasty gardens, renowned for its "water-hugging" design. The nighttime light show is particularly stunning. 2. Three Bridges Scenic Area (Taiping Bridge, Geely Bridge, Changqing Bridge): A landmark of Tongli, where visitors can experience the folk custom of "walking across three bridges." The nighttime lights reflected on the water create a picturesque scene. 3. Pearl Tower Scenic Garden: A garden themed around love legends, where visitors can feed fish and pray for blessings. Free drama performances are often held at the ancient stage. 4. Luoxingzhou: Take a cruise to the island in the center of the lake to experience the tranquility of the "Buddha Land amidst Water and Sky." Additional boat tickets are required (approximately 10 yuan). 5. Nanyuan Teahouse: A century-old teahouse where visitors can listen to Pingtan (a form of narrative singing) and enjoy tea and snacks, experiencing the vibrant atmosphere of the Jiangnan region. Classic One-Day Tour Route Morning: Tuisi Garden → Ancient Style Garden → Pearl Pagoda → Three Bridges → Chongben Hall → Jiayin Hall; Afternoon: Shopping on Ming and Qing Streets → Taking a cruise to Luoxingzhou Island → Night tour of Tuisi Garden or Three Bridges. Location: No. 1 Zhongchuan South Road, Wujiang District 0 4 Jinji Lake Scenic Area Jinji Lake Scenic Area , the only national AAAAA-level tourist attraction in China with the unique characteristic of business tourism, and a concentrated display area of the "National Business Tourism Demonstration Zone". Covering a total area of 11.5 square kilometers (including a water area of 7.4 square kilometers), the scenic area is designed according to the urban business tourism functional layout of "the park is the scenic area, and business is tourism". Centered on Jinji Lake, with an investment of 8.953 billion yuan, five functional zones have been meticulously created: the Cultural Exhibition Zone, the Fashion Shopping Zone, the Leisure and Gourmet Zone, the Urban Sightseeing Zone, and the Central Water Scenic Zone. Ten major landscapes offer a splendid sensory journey, and six business tourism experiences provide high-end and fashionable appreciation, offering a wealth of customized tourism products for business people, tourists, and local residents. Recommended Route: Wind Garden → Jinji Post 02 → Lakeside Avenue → Oriental Gate → Jinji Post 01 → Wanghu Pavilion Pier (Jinji Lake Cruise) → Jinji Lake Musical Fountain. Transportation Tips: Take Metro Line 6 to Exit 3 of Ligongdi Station and walk to Wind Garden. The subsequent attractions can all be reached on foot. Location: Suzhou Industrial Park 0 5 Suzhou Wuzhong Taihu Lake Tourist Area Taihu Lake is one of the five largest freshwater lakes in China, surrounded by beautiful scenery and abundant tourism resources. Recommended Attractions 1. Suzhou Wuzhong Taihu Lake Tourist Area: A national 5A-level tourist attraction, comprising Dongshan Scenic Area, Qionglong Mountain Scenic Area, Wangshan Scenic Area, and Taihu Lakeside National Wetland Park, among others. Dongshan Scenic Area is a peninsula extending into Taihu Lake, featuring attractions such as the Carved Building and Luxiang Ancient Village. Qionglong Mountain is the premier mountain in Suzhou and the birthplace of "The Art of War". Wangshan Scenic Area showcases a pastoral dreamscape. Taihu Lakeside National Wetland Park boasts eight scenic spots, including "Exploring the Secrets of the Trestle Bridge" and "Reed Maze". 2. Suzhou Taihu Lake National Wetland Park: Located in the western part of Suzhou city, bordering Taihu Lake to the west. It houses the Giant Panda Science Education Center, where giant pandas Xinyue and Zhuyun reside, as well as the Wetland Science Education Center · Botanical Garden, Water Forest, Aquarius Camping Area, and more. Visitors can take boat tours to enjoy the beautiful scenery on both sides of the lake. 3. Yuantouzhu in Wuxi: A peninsula on the northwest shore of Taihu Lake, featuring attractions such as Chongshan Hidden Beauty, Luding Welcome to the Dawn, and Yuantou Spring Waves. During the spring cherry blossom season, the cherry blossoms bloom like clouds and rosy mists, complementing the scenic beauty of Taihu Lake's landscape, creating a breathtaking sight. 4. Nianhua Bay: This is a resort town rich in Zen culture, blending the architectural characteristics of the Jiangnan water towns with elements of Zen culture. The nighttime light shows and Zen-themed performances are particularly distinctive. Location: Huantaihu Road, Wuzhong District 0 6 Shajiabang-Yushan Shanghu Tourist Area Yushan is both a scenic area and a national forest park. The entire mountain is covered with dense foliage, lush and verdant, filled with the chirping of birds, creating an enchanting scene. It is also steeped in historical allusions, such as the story of Zhong Yong (Yuzhong), the second son of King Tai of Zhou at the end of the Shang Dynasty, who, along with his elder brother Taibo, yielded the throne and moved south, eventually being buried here after his death. Shanghu, on the other hand, is an urban wetland park, renowned for being the place where Jiang Shang (Jiang Ziya) lived in seclusion and fished at the end of the Shang Dynasty. The lake contains islands, and the islands are dotted with lakes, with egrets and herons soaring through the air, creating a picturesque and pleasant scenery. The scenic area hosts a variety of activities throughout the year, with the spring Peony Festival becoming one of the most influential tourism events in the Jiangnan region, attracting tens of thousands of visitors annually, making it a lively and bustling place. Among them, Yushan is divided into several major sections, including the Baoyan Scenic Area, Jianmen Scenic Area, and Yushan City Wall Scenic Area, featuring attractions such as "Fushui Qingyan" (Rock in the Clear Water), "Jianmen Qishi" (Strange Stones at Jianmen), Weimo Villa, Jiange Pavilion, Canghai Temple, Baoguo Monastery, Baoyan Temple, Laoshidong Cave, and numerous tombs of famous figures. Shanghu covers an area of over 800 hectares, with seven islands including Hexiangzhou, Diaoyuzhu, Mingqinzhou, and Taohuadao, as well as scenic spots like "Huqiao Chuanyue" (Moonlit Bridges over the Lake) and "Shanghu Yanyu" (Misty Rain over Shanghu). It also features attractions such as Taigong Island, Fushui Villa, Boat Model Museum, and Jiangnan Peony Museum. Location: Shajiabang Town, Changshu City 0 7 Jingsi Garden A newly designated 5A-level scenic area (contemporary garden), highlighted by its kilometer-long Lingbi Stone Corridor, ideal for avoiding the crowds of traditional gardens. The plant landscape within the garden seamlessly integrates with the architecture. In spring, magnolias and begonias bloom together, with kittens occasionally glimpsed amidst the greenery, resembling a real-life version of "The Wizard of Oz." It is an excellent place to escape the hustle and bustle and experience a sense of tranquility. Although Jingsi Garden is not very large, it is beautifully arranged, featuring pavilions, terraces, towers, bridges over flowing water, rockeries with strange stones, winding paths leading to secluded spots, and a long corridor. Strolling along the corridor while enjoying the beautiful scenery is truly delightful. Location: No. 919 Yunli Road, Wujiang District

Macro News 1. On the morning of May 10 local time, President Xi Jinping successfully concluded his state visit to Russia and attended the celebrations marking the 80th anniversary of the victory in the Great Patriotic War of the Soviet Union before returning to Beijing. 2. On May 9, Premier Li Qiang of the State Council presided over an executive meeting of the State Council, during which a report was heard on the work to promote the high-quality and efficient development of pilot free trade zones (FTZs). The meeting emphasized the need to support pilot FTZs in aligning with high-standard international economic and trade rules, further intensifying institutional innovation, and taking the lead in pilot initiatives in areas such as the development of service trade and the facilitation of cross-border data flows, while conducting differentiated explorations. It was also highlighted that reform task authorizations should be expanded in a manner suited to local conditions, and that the regional layout should be optimized and adjusted according to the actual needs of industrial development, steadily promoting the upgrading of mature pilot FTZs. 3. The high-level economic and trade talks between China and the United States were held in Geneva, Switzerland, from May 10 to 11. He Lifeng, the Chinese head of the economic and trade delegation and Vice Premier of the State Council, stated at a press conference held by the Chinese delegation on the evening of May 11 local time that the high-level economic and trade talks between China and the United States were frank, in-depth, and constructive, with important consensus reached and substantive progress made. Both sides agreed to establish a China-U.S. economic and trade consultation mechanism. China and the United States will finalize the relevant details as soon as possible and release a joint statement on the outcomes of the talks on May 12. 4. On May 10, Wang Yi had a phone conversation with Pakistan's Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari. Wang Yi expressed that China expects and supports both Pakistan and India to achieve a ceasefire as soon as possible. Once a ceasefire is achieved, it must be jointly adhered to in order to avoid the resurgence of conflicts. This is in the interests of both Pakistan and India, conducive to regional peace and stability, and also a widespread expectation of the international community. China is willing to continue to play a positive role in this regard. On the same day, Wang Yi also had a phone conversation with India's National Security Advisor Ajit Doval, during which he stated that China supports and expects India and Pakistan to achieve a comprehensive and lasting ceasefire through consultations. This is in the fundamental interests of both India and Pakistan and is also the common aspiration of the international community. 5. An article titled "Equal Dialogue is the Right Path to Resolving Issues Between Major Powers" by Zhong Sheng in the People's Daily pointed out that if the United States wants to resolve issues through negotiations, it must face up to the serious negative impacts that unilateral tariff measures have brought upon itself and the world, respect international economic and trade rules, fairness, justice, and the rational voices of all sectors, demonstrate sincerity in negotiations, and correct its erroneous practices, rather than saying one thing and doing another, or being inconsistent and unpredictable. 6. According to data from the National Bureau of Statistics (NBS), in April 2025, the national consumer price index (CPI) decreased by 0.1% YoY. In April 2025, the national ex-factory prices of industrial producers decreased by 2.7% YoY and 0.4% MoM; the purchase prices of industrial producers decreased by 2.7% YoY and 0.6% MoM. Industry News 1. The 17th Shenzhen International Battery Technology Exchange/Exhibition (CIBF2025) will be held in Shenzhen from May 15 to 17. The list of exhibitors includes several well-known companies such as CATL, BYD, and 3M China. The concurrent Battery Frontier Technology Symposium will feature multiple presentations related to solid-state batteries. Gotion High-tech will host a Global Technology Conference, where its chief scientist previously revealed that a new high-safety solid-state battery will be launched. Brokerages pointed out that sectors such as low-altitude aircraft and humanoid robots will significantly stimulate the accelerated development of solid-state batteries. 2. Data from the Passenger Car Association shows that retail sales of passenger NEVs in April reached 905,000 units, up 33.9% YoY but down 8.7% MoM. Cumulative retail sales from January to April this year totaled 3.324 million units, an increase of 35.7%. The association stated that China's car exports to the US are minimal, especially since independent brands are not sold in the US at all, so domestically produced independent brand cars will not be affected by US tariff increases. 3. Multiple reports suggest that Apple's iPhone release strategy will change starting in 2026: the basic model will be launched in H1, while the Pro, ultra-thin, and foldable models will be updated in H2. A reporter recently learned from a supply chain company that Apple has provided suppliers with shipment target guidance for the first foldable iPhone, a "large foldable iPhone," to be launched in H2 2026. This supply chain company is a supplier of multiple parts for Apple phones. 4. Since the beginning of this year, more than 20 commercial banks have lowered their listed interest rates for time deposits, making "high-interest deposits" with rates above 3% increasingly rare in the market. Bank deposit rates have now fully entered the "1% era." Amid the banks' intensive interest rate cuts, medium and long-term deposit rates at several banks have shown a significant "inversion." 5. On May 11, humanoid robot startup Songyan Power unveiled a new generation of bionic robots, featuring a new female character named Xiao Nuo. According to reports, it boasts multi-modal embodied interaction, ultra-high degrees of freedom (32DOF), near-realistic facial expressions, open character customization, and underlying interfaces, supporting personalized makeup. A reporter from the Science and Technology Innovation Board Daily learned on-site that Songyan Power's N2 robot has already secured over 1,000 pre-orders. 6. The country's first commercial hydrogen-powered locomotive began trial operations on the 10th in Liuzhi Special District, Liupanshui City, Guizhou, filling the gap in hydrogen-powered rail freight transportation in south-west China. 7. The China Academy of Chinese Medical Sciences released an evaluation standard for traditional Chinese medicine (TCM) large models. This standard is the first to establish a quantitative assessment system for large models in the TCM field.According to this standard, the evaluation of large models in traditional Chinese medicine focuses on two aspects: technology and application capabilities. The standard primarily covers three capability domains—scenario richness, capability support, and application maturity—with 13 capability subdomains and over 30 capability items. 8. A research report by China Securities pointed out that, based on the 2024 annual reports and the Q1 2025 reports, the profitability of the PV industry has significantly pulled back. However, the current report suggests that the bottom of the PV industry's financial statements has been reached. The substantial impairment of fixed assets in Q4 and the impact of the Southeast Asian anti-dumping and countervailing duties in Q1 have already been reflected in the financial statements, and it is expected that the probability of further deterioration in profitability is relatively small. The report believes that the industry should subsequently focus on upstream destocking and the progress of capacity exiting the market. Corporate News 1. During his speech at the 6th Shanghai Youth 50 Forum for Innovation and Entrepreneurship, Wang Xingxing revealed that the development of humanoid robot companies, including Unitree, is currently in good shape. "Many companies have seen a surge in orders," Wang said. He mentioned that Unitree Technology is currently in urgent need of personnel across all positions, including administrative, procurement, sales, technical, R&D, and marketing roles, and welcomes young talents to join. 2. Wanxiang Qianchao, which has had two consecutive trading days of limit-up, announced that the transaction plan for a major asset restructuring is undergoing further negotiations. 3. Chengfei Integration, which has had three consecutive trading days of limit-up, announced that there have been no significant changes in the company's operating conditions or internal and external operating environments recently. 4. Hongqiang Corporation, which has had eight limit-up trading days in 14 days, announced that there are no material matters that should have been disclosed but have not been. 5. *ST Youshu announced that the delisting risk warnings and other risk warnings for the company's stock trading have been revoked. 6. Qujiang Cultural Tourism announced that 4.7% of the company's shares held by its controlling shareholder are scheduled to be auctioned. 7. Li Auto announced that the cumulative delivery volume of the Li L7 has exceeded 300,000 units. 8. Mabwell Therapeutics announced that its Chairman and General Manager, Liu Datao, is under investigation for suspected short-swing trading. 9. China First Heavy Industries announced that its Chairman, Lu Wenjun, is under investigation, with the company's performance declining over the past three years under his leadership. Global Markets 1. On the 10th, Pakistani Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari stated on social media that Pakistan and India have agreed to an immediate ceasefire. On the same day, Indian Foreign Secretary Vinay Mohan Kwatra announced that India had reached a ceasefire agreement with Pakistan. However, shortly after both sides announced the ceasefire, explosions were once again heard in the Indian-administered Kashmir region. 2. Ukrainian Foreign Minister Dmytro Kuleba stated on the 10th that German Chancellor Friedrich Merz, French President Emmanuel Macron, Polish Prime Minister Donald Tusk, and UK Prime Minister Keir Starmer had a phone conversation with US President Donald Trump after concluding their meeting with Ukrainian President Volodymyr Zelenskyy in Kyiv.Sebihga stated that Ukraine and all its allies are ready to achieve a complete and unconditional ceasefire on land, in the air, and at sea for at least 30 days starting from the 12th. 3. The three major U.S. stock indices closed mixed last Friday. The Dow Jones Industrial Average fell 0.29%, with a weekly decline of 0.16%; the S&P 500 index dropped 0.07%, with a weekly decline of 0.47%; the Nasdaq index closed flat, with a weekly decline of 0.27%. Among large-cap tech stocks, there were mixed performances. Tesla surged over 4%, and Intel rose 2%. Lyft jumped over 28%, marking its best single-day performance since February 2024. Insulet Corp. (PODD) rose nearly 21%, its best single-day performance since November 2022. Most popular Chinese ADRs declined, with the Nasdaq Golden Dragon China Index closing down 0.45%. Investment Opportunities Reference 1. World UAV Congress to be held; institutions say future industry market size may exceed 300 billion yuan It is reported that the 9th World UAV Congress 2025, themed "Entering a New Era of the Low-Altitude Economy," will be grandly held in Shenzhen in late May. Zhongtai Securities analysis points out that UAVs have demonstrated outstanding cost-saving and efficiency-enhancing performance in industrial applications, with an average annual growth rate exceeding 50%. In comparison, the market size of China's industrial UAV industry has grown from 4.3 billion yuan in 2016 to 38.18 billion yuan in 2021, with a compound annual growth rate (CAGR) of 54.7%. It is expected to reach a market size of 301.85 billion yuan by 2026. From the supply side, in industrial application scenarios, UAV enterprises continue to improve various models, such as equipping the airframe with customized payloads to enable capabilities like infrared detection, radar scanning, pesticide spraying, loudspeaking, and monitoring, thereby expanding the industrial application landscape of UAVs. From the demand side, in industrial scenarios, UAVs can partially replace manual labor in executing tasks, bringing cost-saving and efficiency-enhancing advantages. UAVs can perform tasks in complex terrain environments, with inspection efficiency reaching 3-5 times that of manual inspection. 2. Baidu Apollo and CAR Inc. will jointly launch the world's first self-driving car rental service According to media reports, on May 8, 2025, CAR Inc. and Apollo reached a strategic cooperation agreement, announcing that the two sides will carry out in-depth cooperation in the intelligent mobility sector to jointly create the world's first self-driving car rental service. They will explore innovative applications of self-driving technology in the car rental industry, deeply integrate scenario demands, and build a new "intelligent mobility" service ecosystem centered around users. From a market perspective, the multi-dimensional collaborative cooperation between the two sides will accelerate the deployment of self-driving technology in various scenarios such as urban cultural tourism, unlocking consumer potential and tapping into a billion-level intelligent mobility blue ocean market.Great Wall Securities' research report states that the intelligent driving market has broad prospects, and it is recommended to pay attention to links such as modules and LiDAR. According to IDC forecasts, the global scale of connected vehicles will reach 78.3 million units in 2025, with a 5-year compound annual growth rate (CAGR) of 11.5%. In addition, the global scale of autonomous vehicles is expected to reach 89.3 million units in 2026, with a 5-year CAGR of 14.8%. As leading producers at home and abroad continue to invest in the intelligent driving industry, it will enter a period of rapid development. 3. New Breakthrough: Overseas Companies Develop New Technologies, Potentially Tripling the Lifespan of Such Products Industry media reported that South Korean battery manufacturer SK On is accelerating the R&D of polymer, oxide, and sulphide solid-state power batteries. The company has discovered a new protective layer in its research, which is expected to significantly enhance the cycle life of lithium metal batteries. Batteries currently used in EVs typically begin to experience performance degradation after undergoing 1,000 to 100,000 charge-discharge cycles. However, SK On's R&D team claims to have tripled this lifespan indicator. Solid-state batteries represent a revolutionary battery technology, with their core innovation being the use of solid electrolytes to replace the liquid electrolytes found in traditional lithium-ion batteries, offering significant advantages in terms of safety and energy density. Shenwan Hongyuan Securities stated that the industrialisation of solid-state batteries is expected to accelerate. In February this year, at the 2nd China All-Solid-State Battery Innovation and Development Summit Forum, numerous experts, scholars, research institutions, and enterprise representatives gathered to focus on material science, new processes and equipment, and cutting-edge industrial developments, discussing innovative breakthroughs and challenges in all-solid-state batteries. Many experts believe that solid-state batteries are expected to enter mass production and be installed in vehicles by 2027. 4. High R&D Costs + Capital Barriers: The Industry Holds Significant Strategic Importance According to media reports, recently, the Indonesia TransNusa Airlines flight 8B101 (Manado, Indonesia - Shanghai Pudong), operated by the domestically produced regional aircraft C909, made its first landing at Pudong Airport, passing through the "water arch," a symbol of the highest honor in civil aviation. The international route between Shanghai and Manado, Indonesia, was officially opened, marking the longest commercial operation of the C909 aircraft to date, with a flight range exceeding 3,300 kilometers. China's civil aviation market has broad demand. According to Boeing's 2024 CMO Forecast, from 2023 to 2043, China is expected to add 8,830 new civil aviation aircraft deliveries, accounting for 20.08% of the world's total deliveries. Founder Securities pointed out that the development of the large aircraft industry holds significant strategic importance, with a wide radiation scope and strong linkage benefits. The civil aircraft manufacturing industry is of profound strategic significance to the country, directly linked to national economic growth, employment opportunities, and technological progress. This industry not only significantly boosts economic growth but also drives substantial employment and plays a huge role in promoting technological development, particularly in the fields of new materials, new energy, and advanced electronic technologies.

Macro News 1. During his field trip in Shanghai on the 29th, Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission, emphasized that Shanghai shoulders the historical mission of building an international science and technology innovation center. It should seize opportunities, guided by serving national strategies, continuously enhance its role as a source of scientific and technological innovation and a leader in high-end industries, and accelerate the construction of a globally influential science and technology innovation hub. 2. The Symposium of Central Financial Institutions Stationed in Shanghai Supporting Shanghai's Construction of an International Financial Center was held in Shanghai on April 29th. He Lifeng, Member of the Political Bureau of the CPC Central Committee and Director of the Office of the Central Financial Commission, attended the symposium and delivered a speech. He Lifeng pointed out that it is necessary to calmly analyze and respond to recent developments and changes in the external situation, adhere to goal-oriented and problem-oriented approaches, continuously strengthen Shanghai's role as a gateway for financial opening up while ensuring financial security, enhance the status of the RMB asset global allocation center and risk management center, and promote continuous breakthroughs and improvements in the construction of Shanghai as an international financial center. 3. At yesterday's regular press conference of the Ministry of Foreign Affairs, a reporter asked about the US Treasury Secretary's claim that China is responsible for the escalation of the tariff war. In response, Foreign Ministry spokesperson Guo Jiakun stated that China has repeatedly made it clear that there are no winners in a tariff or trade war. This tariff war was initiated by the US. If the US wants to resolve issues through dialogue and negotiations, it should stop threats and pressure and engage in dialogue with China on the basis of equality, respect, and mutual benefit. 4. According to data from the People's Bank of China, the weighted average interest rate on newly issued commercial personal housing loans nationwide in the first quarter of 2025 was 3.11%. 5. The US goods trade deficit widened to a record $162 billion in March, compared to an estimated $145 billion and a February deficit of $147.9 billion. The data, which is not adjusted for inflation, exceeded economists' expectations. Driven by imports of consumer goods, imports rose 5% to $342.7 billion in March. Exports increased 1.2% in the same month. Industry News 1. Announcements of board resolutions disclosed by the five major state-owned banks—Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications—show that the boards of all five banks have passed proposals to amend their articles of association and abolish/no longer establish supervisory boards. These proposals are subject to approval by the banks' shareholders' meetings. In addition, China Merchants Bank also announced that it would no longer establish a supervisory board. 2. New China Life Insurance announced that it plans to invest no more than RMB 10 billion (inclusive) to subscribe for shares in the Guofeng Xinghua Honghu Zhiyuan Phase II Private Securities Investment Fund. It is understood that the fund has a founding size of RMB 20 billion. New China Life Insurance and China Life Insurance each plan to invest RMB 10 billion to subscribe for shares in the private fund. The fund's investment scope includes A+H shares of eligible large listed companies among the constituents of the CSI A500 Index. 3. The General Office of the Ministry of Agriculture and Rural Affairs issued a notice on the "Implementation Plan for the Action Plan to Save Grain in the Aquaculture Industry." It mentions striving to reduce the proportion of grain consumption in feed used by the national aquaculture industry to around 60% by 2030, with the proportion of soybean meal consumption reduced to around 10%. It also mentions controlling the "master switch" of the breeding sow inventory, guiding aquaculture farms and households to optimize the structure of their breeding sow inventory and reasonably control production capacity. 4. Tencent has comprehensively reorganized its research and development system for the Hunyuan large model, mainly refreshing team deployments around the three core areas of computing power, algorithms, and data, and increasing R&D investment. 5. It is reported that some manufacturers in Jiangsu and Zhejiang provinces have received notifications from major US retailers such as Walmart, requesting them to resume shipments in the near future. Additionally, it is reported that a large stationery and office supplies exporter in Ningbo received a notification from Walmart on Monday to resume normal shipments to the US. The company stated that the cost of new import tariffs will be borne by US customers. 6. Cui Dongshu, Secretary General of the China Passenger Car Association, stated in an article that global auto sales reached 8.75 million units in March 2025, up 5% YoY. March 2025 sales were 5% lower than the peak in March 2018, at a median level over the years. Sales from January to March 2025 were 22.64 million units, up 5% YoY. China accounted for 33% of global auto sales from January to March 2025, with the lower share of Chinese automakers at the beginning of the year being a normal reflection of the Chinese New Year factor. 7. The China Meteorological Administration and the Cyberspace Administration of China issued a joint departmental regulation, the "Measures for the Application and Service of Artificial Intelligence in Meteorology," on April 29th, to encourage, promote, and regulate the healthy and orderly development of AI meteorological application services. The "Measures for the Application and Service of Artificial Intelligence in Meteorology" is the first departmental regulation in China to promote and regulate the application of AI in a specific field. 8. The "2025 Work Priorities for Promoting the Healthy and High-Quality Development of Beijing's Private Economy" was recently released. It proposes that Beijing will support private enterprises in building intelligent computing centers, providing support based on a certain proportion of investment for enterprises that purchase domestically controllable GPU chips to provide intelligent computing services. It will also focus on supporting private enterprises in participating in the construction of green innovation platforms. Company News 1. Industrial and Commercial Bank of China reported a net profit of RMB 84.16 billion in the first quarter, down 3.99% YoY. 2. Kweichow Moutai announced a net profit of RMB 26.847 billion in the first quarter of 2025, up 11.56% YoY. 3. China Eastern Airlines announced a net loss of RMB 995 million in the first quarter. 4. China State Shipbuilding Corporation announced that its net profit in the first quarter increased 181% YoY. 5. China Life Insurance announced that its net profit in the first quarter increased 40% YoY. 6. China Northern Rare Earth announced that its net profit in the first quarter increased 727% YoY, mainly due to increases in both sales volume and prices of its major rare earth products. 7. China Construction Bank reported a net profit of RMB 83.35 billion in the first quarter, down 4% YoY. 8. Chuangxing Resources announced that it will be subject to delisting risk warnings starting from May 6th, and its securities abbreviation will be changed to *ST Chuangxing. 9. Tongyu Heavy Industry announced that its controlling shareholder is planning a change in control, and the company's shares and convertible bonds have been suspended from trading. 10. *ST Navigation announced that it has revoked its delisting risk warning, and its stock abbreviation has been changed to Poly Navigation. 11. Air China announced a net loss of RMB 2.044 billion in the first quarter. 12. China Galaxy Securities announced a net profit of RMB 3.016 billion in the first quarter, up 84.86% YoY. 13. Trinasolar announced a net loss of RMB 1.32 billion in the first quarter. 14. China Resources Microelectronics announced that its net profit in the first quarter increased 151% YoY. 15. Bank of China reported a net profit of RMB 54.36 billion in the first quarter, down 2.9% YoY. 16. AECC Aviation Power announced a net profit of RMB 7.5114 million in the first quarter, down 95.15% YoY. 17. CITIC Securities announced a net profit of RMB 6.545 billion in the first quarter, up 32% YoY. 18. Yong'an Pharmaceutical issued an announcement stating that rumors such as "a several-fold surge in taurine prices" are untrue. 19. Weichai Power announced that it plans to repurchase shares worth RMB 500 million to RMB 1 billion for cancellation and reduction of registered capital. 20. Will Semiconductor announced that its net profit in the first quarter was RMB 866 million, up 55.25% YoY. 21. Dawei Technology announced that its shareholder Gao Dapeng plans to reduce his stake by no more than 3% of the company's shares. 22. Tianqi Lithium released its first-quarter report, showing a net profit of RMB 104 million in the first quarter, turning a year-on-year loss into a profit. 23. *ST Jiayu announced that its shares will be delisted on April 30th. 24. Inspur Information released its first-quarter report, showing that its net profit in the first quarter increased 53% YoY. 25. PetroChina reported an IFRS net profit of RMB 46.81 billion in the first quarter, up 2.3% YoY. Global Markets 1. The three major US stock indices closed higher collectively, with the Dow up 0.75%, the S&P 500 up 0.58%, and the Nasdaq up 0.55%. Both the Dow and the S&P 500 recorded six consecutive daily gains. 2. The June contract for WTI crude oil futures fell 2.63%, and the June contract for Brent crude oil futures fell 2.44%. 3. US Secretary of State Marco Rubio stated that Russia and Ukraine now need to submit specific proposals. If there is no progress, the US will withdraw from the mediation process. The US Senate voted to approve David Perdue as the US Ambassador to China. Investment Opportunities Reference 1. MIIT Issues Document to Accelerate the Formulation and Revision of Automotive Chip Standards According to media reports, the Ministry of Industry and Information Technology (MIIT) released the 2025 Work Priorities for Automotive Standardization, accelerating the formulation and revision of automotive chip standards. It will accelerate the formulation of standards for automotive chip environments and general specifications for reliability, information security, and conformance testing, and improve the basic evaluation methods for automotive chips. It will promote the release and implementation of standards for safety chips, power drive chips for EVs, etc., complete the review and submission for approval of standards for intelligent cockpit computing chips, satellite positioning chips, infrared thermal imaging chips, and chassis control chips, and accelerate the development of product standards for control chips, sensing chips, communication chips, and memory chips to meet the needs of automotive chip product selection and matching applications. According to data from China Research and Intelligence, it is estimated that the size of China's automotive chip market may reach RMB 95.07 billion in 2025. Guotai Junan Securities points out that in high-end chip fields such as MCUs, intelligent power devices, and power management chips, foreign manufacturers dominate, and the localization of high-end automotive chips is imperative. 2. The National Data Administration Calls for Promoting High-Level Development and Utilization of Data Resources According to media reports, the National Data Administration held a meeting in Fuzhou, Fujian Province. The meeting called for a profound understanding of the mechanisms of data elements and the laws of industrial development. Centered on building a nationally integrated data resource development and utilization system, it emphasized adhering to market-oriented and value-oriented approaches, strengthening integration and sharing, openness and common use, and authorized operations to accelerate the implementation of policies for the development and utilization of public data and release the value of public data. It emphasized facility interconnection, value co-creation, and scenario applications to accelerate innovative pilots of trusted data spaces and create new models for large-scale circulation and utilization of data. It emphasized interest coordination, subject cultivation, and ecological aggregation to vigorously cultivate an open and innovative data industry ecosystem. It emphasized data registration, resource surveys, and standard construction to continuously consolidate the work foundation, effectively promote high-level development and utilization of data resources, and better empower high-quality economic and social development. Soochow Securities believes that China has gradually achieved cost reduction in computing power and equity in models, and data is expected to become the main driver for China's AI industry to overtake competitors. DeepSeek is expected to break down barriers to the release of public data, promote the marketization of data elements, and recommends paying attention to targets related to data infrastructure, data annotation, and data operations, as well as companies with unique high-quality datasets. 3. Tencent, Alibaba, and ByteDance Compete to Purchase Computing Power Resources In the first quarter of this year, Tencent purchased GPU (graphics processing unit) computing power resources worth approximately RMB 2 billion from ByteDance, mainly consisting of NVIDIA H20 cards and servers. The current updates of Tencent Yuanbao mainly use cards from ByteDance. In addition to Tencent, a source familiar with the matter said that Alibaba also placed GPU orders with ByteDance after DeepSeek became popular in the first quarter of this year. Multiple sources close to ByteDance said that ByteDance stockpiled approximately 100,000 GPU modules last year. A source from a server manufacturer estimated that the total value of these GPU resources is around RMB 100 billion. Previously, Alibaba announced that it will invest more than RMB 380 billion over the next three years in building cloud and AI hardware infrastructure, exceeding the total investment of the past decade. At the same time, internet giants such as ByteDance and Tencent have also increased their investments in computing power, reflecting robust industry demand. Guotai Haitong believes that Alibaba's significant increase in AI infrastructure investment will be actively followed by domestic CSP (cloud service provider) manufacturers, potentially replicating the IDC (internet data center) investment boom seen during the "Internet+" cycle.Other CSP producers will also simultaneously increase their investments in AIDC (Artificial Intelligence Data Centers), driving improvements in demand for the domestic AI computing power industry chain. 4. "Policy support + gradual demand release" expected to boost the industry's prosperity Institutions have pointed out that the profits of civil explosives companies surged in Q1 2025. It is reported that in Q1 2025, civil explosives producers achieved a cumulative explosives production of 899,800 mt, up 1.5% YoY, a cumulative total profit of 1.313 billion yuan, up 23.03% YoY, and a cumulative blasting service revenue of 7.241 billion yuan, up 35.52% YoY. In the medium and long-term, the civil explosives industry is expected to encounter multiple development opportunities, including accelerated M&A integration among leading companies, the Western Development strategy, the establishment of energy supply bases in Xinjiang, and the "go global" initiative under the Belt and Road Initiative. According to media reports, from an industry perspective, the prosperity of the civil explosives industry is expected to rise amid policy support and the gradual release of downstream demand. Data from the National Bureau of Statistics (NBS) shows that mining investment grew by 10.5% in 2024, with stable demand for mining, the largest application sector for civil explosives products. Additionally, the Ministry of Natural Resources has actively expanded the sources of exploration blocks in line with the "14th Five-Year Plan" implementation plan for the new round of strategic mineral exploration breakthroughs. From January to September last year, a total of 984 mineral exploration rights were granted nationwide, including 570 strategic mineral exploration rights, representing a 218.4% YoY increase. Regionally, the demand for explosives in Xinjiang and Tibet regions has shown a growth trend. Zhongtai Securities stated that under the influence of tariff policies, the logic of boosting domestic demand is continuously strengthening. Mining efforts for coal, metals, and other resources may be further intensified, and investments in infrastructure and national key industrial strategies (such as the Western Development strategy and coal chemical industry) are expected to receive enhanced policy support, stimulating a rise in civil explosives demand. Emphasis should be placed on the opportunities in the civil explosives sectors of Xinjiang and Tibet.

On April 18, Zhongtai in Ningxia suspended production for maintenance of one ferrosilicon furnace, affecting daily production by 90 mt. There is no production resumption plan in the short term.